Real-Estate Transactions

Purchasing a home is often the biggest investment in one’s life; as a result, both the buyer and seller should be aware of the legal processes involved in the transfer of real estate.

 

Contracts Regarding Buying or Selling

Upon accepting the price for a house, the buyer may be asked to sign a contract requiring them to pay a deposit for the house. In some states, the buyer may be required to sign a binder contract, which then commits them to signing a purchase contract; in other states, the buyer will sign the purchase contract containing the purchase price right away. Signing any written document will most likely legally bind buyers to buying the house, and sellers to selling the house.

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As a result, both buyers and sellers should always ask for legal advice from a professional prior to signing a contract. Once a contract for the sale of documents and rights is signed, the obligations in this deal are likely to be set, and a lawyer will no longer be able to help modify any adverse conditions for his client. Therefore, if buyers and sellers want a lawyer to represent them, they should find a lawyer before signing any documents.

 

Some key points to note: contracts regarding the sale of real-estate should state the names and addresses of both parties, as well as the purchase price of the property. In addition, the contract should fully and accurately describe the property being sold, the method of payment, and the seller’s real-estate ownership.

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Key Points to Remember about Contracts

Items to be included in the transaction, such as appliances, lighting, furniture, etc., should also be described in detail in the written contract. The contract should also list the date that the buyer receives the house, as well as the responsibilities of both parties. If the seller needs to stay on the property after the transfer, the terms regarding this stay should be specified in the contract.

 

The contract will specify the circumstances in which the two sides can close the contract. The buyers should make sure that the contract allows them to withdraw from the transaction, and reclaim all of the deposit that was previously paid, if the buyer is deemed ineligible for loans.

 

Real-Estate Agents

Most real-estate transactions will involve real-estate agents, and it is extremely important that they have a vocational license. Experienced agents can help buyers find a satisfactory house, assist in the communication between buyers and sellers, and provide assistance during contract negotiations. Do note, however, that some real-estate agents represent the seller, so the purchase-contract prepared by a real-estate agent may not be as beneficial for buyer as one prepared by the buyer's lawyer.

 

Home Inspections

According to New York State law, home-buyers are obligated to have a house inspection. Buyers must hire a professional home inspector and have the house inspected before the contract closing. Buyers should make sure that their purchase contract lists their right to cancel the purchase if defects are not fixed by the seller before closing.

 

Mortgage Loans

Buyers should try to borrow money at the best interest rates when they take out loans. Many buyers will ask the loan broker to help find them good interest rates and loan terms. While an experienced loan broker will often effectively help buyers find good interest rates, negotiate the terms, and explain the loan contracts, it should be noted that loan brokers usually receive commission paid by the lender or the bank.

 

Question Regarding Property Rights?

In real-estate, the word “property” typically includes any buildings or structures on top of the land, in addition to the land itself. Those who own the buildings and land are described as having the “property rights” to the estate. It is important for buyers to remember that even though they have a house or a land lease, it is still possible that not all property rights have been transferred to them. This could be the case due to specifications in the contract terms regarding property rights and/or liabilities and defects. The last thing a buyer would want to do is purchase an estate with contract flaws regarding property rights.

 

Please refer to the following link for more information regarding property rights.

Home Closing and Property Rights

 

Property Survey and Insurance (Title Search, Survey, and Insurance)

In the state of New York, when buyers purchase property, the buyers' lawyer will conduct a title search through the title company upon the signing of the contract. However, before any transfer of property/funds happens, buyers should receive advice from their lawyers about: 1) any issues regarding complications which may obstruct the future use of the new home or its resale value; 2) whether or not the seller is the actual owner or someone authorized to sell the property; 3) information on the purchase and coverage of title insurance.

 

Closing

The “closing” is the last event in the process of purchasing real-estate; it is when the seller transfers the property to the buyer after having obtained all the documents and costs requested by the contract. Before payment, the buyers' lawyer will carefully examine the documents to determine whether or not the terms of the contract and commitments are satisfied. During the transfer, the buyers'  lawyer will also tell the buyers when they can move in and use the house. Under normal circumstances, once the buyers have paid the balance and completed the purchase, the seller will hand them the keys.

 

Conclusion

Buying a home is a large investment for any individual, so it is imperative to be careful during every step of the transaction process. It is important to protect oneself before making any significant decisions. Rather than relying on rumors and instinct, the best way to prevent oneself from being cheated and losing money is to seek legal counsel from a competent and responsible lawyer. Here at the Law Office of Heng A. Chen, we are here to provide you with high-quality legal services for your protection. When you are thinking of buying a home, contact us, and we will assist you through every step of this potentially life-changing decision.